New Delhi: The economic growth of India rose to 7.8 per cent in the April-June quarter, according to the government data released today.
Real GDP expanded from 6.9 per cent in the year-earlier quarter, while gross value added rose 8.2 per cent, pointing to broad-based momentum across the economy.
Gross fixed capital formation, a measure of investment in fixed assets, grew 11.9 per cent in real terms in Q1 FY27, accelerating from 5.8 per cent a year earlier.
Private final consumption expenditure rose 7.1 per cent, compared with 6.8 per cent in Q1 FY26, indicating continued support from domestic demand.
Exports of goods and services increased 12 per cent in real terms, while government final consumption expenditure grew 4.3 per cent. The stronger investment cycle was also reflected in capital goods activity, with output rising 15.2 per cent during the quarter.
Services remained a key engine of expansion, with tertiary-sector GVA growing 10 per cent in real terms.
Financial, real estate, ownership of dwellings, information technology and professional services grew 12.1 per cent, while trade, hotels, transport, communication and services related to broadcasting and storage expanded 8.5 per cent.
Manufacturing GVA rose 9.2 per cent, compared with 8.3 per cent a year earlier, while electricity, gas, water supply and other utility services grew 8.9 per cent.
Construction growth accelerated to 7.7 per cent from 5.2 per cent in Q1 FY26, adding to the strength in investment-linked activity.
The financial, real estate and professional services segment was the fastest-growing major services category. Strong credit growth also supported financial-sector activity, with bank credit across sectors recording robust expansion during the quarter.
The primary sector grew 2.9 per cent in Q1 FY27, slowing from 5.3 per cent a year earlier. Agriculture, livestock, forestry and fishing expanded 3.6 per cent, compared with 4.4 per cent in the corresponding quarter last year.
Mining and quarrying contracted 2.4 per cent after expanding 12.4 per cent a year earlier. The weakness in mining partly offset stronger performances in manufacturing, utilities, construction and services.
The data showed that real GDP stood at Rs 81.36 lakh crore in Q1 FY27, against Rs 75.46 lakh crore in the year-earlier period. Nominal GDP increased 10.3 per cent, while nominal GVA rose 11.5 per cent. (BVI)
